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In Business Series © Prentice Hall 2007
Microsoft Office Excel 2007 In Business
Core Chapter 3
Calculating DataFormulas and Functions
In Business Series © Prentice Hall 2007
Chapter Introduction
Why Do I Need This What’s Wrong with
This Spreadsheet Review & Challenge
Questions Skills Exam
Excel Skill Sets Formulas Basic Functions Financial Functions
Common Mistakes Quick References Video Workshops
In Business Series © Prentice Hall 2007
Formulas
Basic Formulas Copying and Pasting Formulas Complex Formulas Auditing Formulas
In Business Series © Prentice Hall 2007
Basic Formulas
Most basic method of performing calculations
Figure 3.1 shows Mathematical operator symbols used in Excel
Symbol Operation
+ Addition
- Subtraction
/ Division
* Multiplication
^ Power/ Exponent
In Business Series © Prentice Hall 2007
Net Sales Formula
Must begin with equal (=) sign If = sign is omitted, B3
– B4 will be displayed in B5
By using cell references Any value typed into
cell B4 will be subtracted from any value typed in cell B3
In Business Series © Prentice Hall 2007
Copying & Pasting FormulasRelative Reference
Relative referencing will adjust cell references. Without relative
referencing, you would have to retype every formula in a worksheet even though it may be performing the same mathematical function.
Notice changes in row numbers for the cell references.
In Business Series © Prentice Hall 2007
Paste Options
Contains a few commonly used commands from the Paste Special dialog box
To open the Paste Options list, click the down arrow on the Paste icon in the Clipboard group
In Business Series © Prentice Hall 2007
Paste Special Key Options
Formats All except borders Formulas Transpose
In Business Series © Prentice Hall 2007
Complex Formulas
Any equations that consist of more than two variables and requires two or more mathematical operators are complex.
Order of mathematical operations will impact calculations.
The complexity of formulas is limitless.
In Business Series © Prentice Hall 2007
Auditing Formulas
Most helpful when proofing formulas for accuracy Show Formulas Trace Precedents Trace Dependents
In Business Series © Prentice Hall 2007
Formula Summary
Video Workshop Startup Costs for a
New Business Department Store
Planning Meeting
In Business Series © Prentice Hall 2007
Basic Functions
Use of functions may be more efficient than similar formulas Basic Statistical Functions AutoSum Absolute References
In Business Series © Prentice Hall 2007
Basic Statistical Functions
Sum Function Can be used to add a
range of cells
In Business Series © Prentice Hall 2007
Relative Cell Referencing
Introduced in the Formulas section Cell references will
change when the function is copied
In Business Series © Prentice Hall 2007
AutoSum
Provides quick access to a few basic statistical functions Available options
In Business Series © Prentice Hall 2007
Absolute References
When pasting to a new cell location, you may not want Excel to adjust cell references. Absolute—neither the
column (C) nor the row (10) will change
First Mixed—only the column (C) will change
Second Mixed—only the row (10) will change
Reference Details
$C$10 Absolute
C$10 Mixed
$C10 Mixed
In Business Series © Prentice Hall 2007
Absolute References (cont.)
Adding an Absolute Cell Reference
In Business Series © Prentice Hall 2007
Basic Functions Summary
Video Workshops Statistical Functions Absolute References
Evaluating a Transportation Business
Industry Analysis Project
In Business Series © Prentice Hall 2007
Financial Functions
May require the use of arguments Future Value Payment
Both example functions are related to the financial aspects of business with regards to evaluating investments and loans
In Business Series © Prentice Hall 2007
Future Value Function
Used to calculate the value of investments over a specific period of time The FV function can be
used to calculate the End Balance value.
FV function uses five arguments.
In Business Series © Prentice Hall 2007
Lump Sum Investment
FV Function can be used to evaluate an investment made in one lump sum. This would require the
[pv] argument to be defined.
In Business Series © Prentice Hall 2007
Evaluating Investments
Use of cell references to define arguments in the Future Value function Allows you to conduct
what-if scenarios
In Business Series © Prentice Hall 2007
Payment Function
Helpful when calculating payments of a loan
At least three of five arguments must be defined: rate nper pv (Present Value [fv] Future Value [type]
In Business Series © Prentice Hall 2007
Payment Function (cont.)
Cell references are used to define each of the arguments
New Output when Data is Changed Annual interest rate is
changed to 6.0% Monthly payment is
reduced
In Business Series © Prentice Hall 2007
Function Library
Used to research detailed information regarding the purpose and arguments for all Excel functions
Can also serve as an alternate way of building functions
In Business Series © Prentice Hall 2007
Financial Functions Summary
Video Workshops Future Value Function Payment Function Function Library
Financial Planning for Retirement
Real Estate Investment
In Business Series © Prentice Hall 2007
Chapter Summary
Excel in Practice Anecdote Review Questions Skills Exam Challenge Questions
